Balkrishna Industries has been issued an adjudication order by the Assistant Commissioner of CGST for the financial years 2019-20 and 2020-21, confirming a tax demand of Rs 93.73 lakh. The order, received on 30th March 2026, includes an equivalent penalty due to the disallowance of input tax credit under section 74(1) of the CGST Act, 2017.
The adjudication order was issued under the provisions of the CGST Act, 2017, along with corresponding regulations of the Gujarat State GST Act, 2017, and Section 20 of the IGST Act, 2017. Despite the significant tax demand, Balkrishna Industries has stated that there will be no impact on its financial, operational, or other activities.
The company has indicated its intention to contest the order at a higher appellate level, as the order is appealable. Balkrishna Industries is in the process of preparing for an appeal to challenge the tax demand and associated penalty.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).